Even though the past few days have come with a correction, it's been more of a sideways move than a downward one. That bodes well for stocks to keep moving higher in 2013.

It's important to remember that even though the broad market looks pointed higher right now, the same can't be said for every individual stock out there. That's why we're not looking exclusively at upside trades today -- Hawkins Chemical ( HWKN) is the sole bearish setup that's hitting our radar.

Hawkins is currently in the final stages of forming one of the most well known topping patterns: the head and shoulders. In a sentence, the head and shoulders is a pattern that indicates exhaustion among buyers. It's formed by two swing highs that top out around the same level (the shoulders), separated by a bigger peak called the head. A breakdown below the support level that connects those three peaks (called the neckline) is the signal to sell or short shares.

So far, this head and shoulders top looks pretty textbook, which means that the trading implications are especially good for it right now. That said, if HWKN buyers can muster the strength to push shares above the top of the right shoulder, we'll consider this setup broken. In the meantime, watch for the move below the neckline at $36.50.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.